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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Convertible Note
Please, the issuing costs of convertible loan note , do we charge it to the profit and loss account?
Lets assume 6% convertible loan with a proceed of $30 million note with an issue costs of 1 million on the 1 Oct 2004. And the loan note will be redeemed say 30 Sept 2009 with effective rate of 9%. No repayment is due until 30 Sept 2009.
I will going to charge the $1 million to the SPF or SPL? Because the question say that in the drafted trial bal , this amount was charged to SPL account and need to be adjusted.
Hi,
Issue costs on convertibles are not examinable at this level, they will be examinable in SBR.
Thanks
this question was past exams f7
Which one? I doubt it was, but I could be wrong.